Dally Company Produces a Part That Is Used in the Manufacture

question 144

Multiple Choice

Dally Company produces a part that is used in the manufacture of one of its products.The costs associated with the production of 5,000 units of this part are as follows: Of the fixed factory overhead costs,$72,000 are avoidable.Assuming there is no other use for the facilities.What is the highest price Dally Company should be willing to pay for 5,000 units of the part?

• A)$288,000
• B)$336,000
• C)$408,000
• D)$504,000

Recognize and apply objective and task budgeting in promotional activities.

Identify different forms of direct marketing and their effectiveness.

Understand the concept of competitive parity in budgeting and its application.

Analyze the significance of promotion scheduling and timing in marketing campaigns.

---

Definitions:

Molten

Melted.

Melted

Refers to a solid substance that has been turned into a liquid by heating.

Friction

The resistance that one surface or object encounters when moving over another, often generating heat.

Immobilize

To restrict the movement of a part of the body or an object, often to prevent further injury or to allow healing.